- The OECD warns the UK faces surging inflation and weaker economic growth this year due to the prolonged Middle East conflict, which risks global energy and food price increases.
- The UK is projected to have the second-highest inflation and second-lowest growth among G7 nations, with inflation expected to average 4% in 2026 and GDP growth downgraded to 0.7% for the same year.
- Disruptions to oil, gas, and fertiliser supplies from the Middle East could significantly raise business costs, global food prices, and inflation, with potentially severe impacts on household finances.
- The OECD recommends governments encourage energy efficiency in homes and businesses and reduce dependence on fossil fuel imports to mitigate geopolitical shocks.
- Shadow Chancellor Sir Mel Stride criticised the government's economic choices, while Rachel Reeves stated the UK has the right economic plan to navigate global instability.
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